PlayStation 3's launch ups ante in games war
By Paul Abrahams in San Francisco
Published: September 5 2002 21:58 | Last Updated: September 5 2002 21:58
Sony plans to launch as early as 2005 a successor to its top-selling PlayStation 2 games console, putting huge pressure on rivals Microsoft and Nintendo.
The date, earlier than most observers expected, would have big implications for the cyclical computer games industry, which is expected to generate global revenues of $27bn this year, according to UBS Warburg.
Microsoft and Nintendo started selling their rival machines only last year and are struggling to catch up with Sony. The Japanese group has sold 33m PlayStation 2s, more than eight times the sales of Microsoft's Xbox and Nintendo's GameCube.
The early launch of PlayStation 3 would also have a big impact on games software developers. Software companies have found the transition from one generation of platform to another difficult, hitting sales and raising development costs. Sony has begun briefing software groups on PlayStation 3.
A senior executive at a leading US games software company said specifications suggested developing tools and games for the PlayStation 3 could be difficult. That could stretch the resources of smaller games developers and accelerate industry consolidation.
PlayStation 3 is expected to have up to 1,000 times more processing power and benefit from enhanced video and audio systems, broadband connectivity and a DVD player. Sony aims to create the main entertainment machine in the family room at an initial price of less than $400.
Sony intends to reduce the cost of developing PlayStation 3 by working on the key micro- processor with IBM and Toshiba. For PlayStation 2, Sony developed and built the key components alone. PlayStation 3 is likely to be able to play Play- Station 2 games. PlayStation 2's compatibility with the previous generation was a big factor in the console's success.
The continuing success of the PlayStation is important to Sony. At some points the division has generated 40 per cent of the electronic group's operating profits.
Microsoft is likely to respond by launching Xbox 2 about the same time as PlayStation 3.